The UK's Ratification of the Hague 2019 Judgments Convention

On June 27, 2024, the UK ratified the Hague Convention of July 2, 2019, on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters(the “Convention”) .This significant step aims to bridge the gap in the recognition and enforcement of foreign judgments left by Brexit. The Convention will come into effect in the UK on July 1, 2025.

Significance of the Convention

The Convention establishes a comprehensive and uniform framework for recognizing and enforcing judgments in civil or commercial matters between Contracting States.  In addition to the UK, EU member states (excluding Denmark), Ukraine, and Uruguay have ratified the Convention. Other countries, such as  Costa Rica, Montenegro, North Macedonia, Russia, and the USA, have signed but not yet ratified it. This development is a significant step forward for international litigation, given that Brexit created uncertainty in this area.

Impact of Brexit on Recognition and Enforcement

Before Brexit, the UK benefitted from automatic mechanisms for recognizing and enforcing judgments through the Recast Brussels Regulation, the 2007 Lugano Convention, and the Hague 2005 Convention. Following Brexit, however, the UK has had to rely a patchwork of  bilateral treaties, the Hague 2005 Convention, and domestic laws. The 2019 Convention fills a major gap by simplifying and streamlining these processes, creating more certainty for businesses and individuals involved in cross-border litigation.

Scope and Application

The Convention covers judgments in civil and commercial matters, with certain exclusions such as insolvency, intellectual property, defamation, and arbitration. It provides clear criteria for the recognition of judgments, including factors like habitual residence of a party in the State of origin or the place where a contract was performed. The Convention also allows for refusals of recognition in cases of improper notification of proceedings, fraud, or violations of public policy.

Practical Benefits

The UK's ratification of the 2019 Convention presents several key advantages:

• Broader Coverage: The 2019 Convention goes beyond the Hague 2005 Convention, extending to judgments based on non-exclusive and asymmetric jurisdiction clauses, providing greater flexibility in jurisdiction agreements.
• Flexibility in Jurisdiction Clauses: Parties can now choose non-exclusive or asymmetric English jurisdiction clauses in their contracts.
• Certainty and Efficiency: The Convention will ensure that judgments from English courts are recognized and enforced more widely, resulting in lower costs and faster resolution of cross-border disputes.
• Enhanced Competitiveness: The streamlined recognition and enforcement process will bolster the UK’s position as an attractive hub for international commercial disputes and boost confidence among global businesses seeking reliable legal venues.

Challenges and Considerations

One challenge is the uncertain stance of EU member states, which may choose to optout of applying the Convention to the UK. The coming year will determine whether any exclusions arise between the UK and other Contracting States, particularly within the EU. However, it is unlikely that significant barriers will be imposed, as the Convention's framework is designed to promote international cooperation.

Conclusion

The UK’s ratification of the Hague 2019 Judgments Convention is a pivotal development for cross-border litigation, providing legal certainty and reducing the complexity of recognizing and enforcing foreign judgments. This move will fill the post-Brexit void and enhance the UK’s attractiveness for international commercial disputes.